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Social Polarization In Australia

Decent Essays

Australia is a highly urbanized country, with most of the population living in the city. Out of the 23 million residents nearly 70% live in major cities or towns (Australian Bureau of Statistics, 2013). Population growth continuous to be prominent in inner cities and outer suburbs. Australian major cities play a key function for the national economy. However the increase in urbanization and immigration creates issues such as social polarization. Social polarization creates vulnerability with continuing high rates of unemployment, low level of household income, separation between communities and inequality.

Social polarization

Cities today are dominated by business and industrial services rather than by manufacturing, creating a growing …show more content…

There has been a rapid growth in the service sector jobs and a strong decline in manufacturing employment (Murphy and Watson, 2009). Since the economic boom in the 1950s and 1960s, the Australian economy has been unable to stand the growth of living standards appreciated by households in that period.

Pay rates in the manufacturing sector fell below average for all the employees and those working in this sector were especially vulnerable to sector shifts, simply because they are not able to adapt to the change. 70% of the manufacturing workforce had no educational qualifications, however even skilled office workers were affected through technological change and the introduction of microprocessors in the retail and financial sector (Forest, 1995).

Over the past 50 years service industries have grown strongly, increasing from 60% of total output in the 1960s to around 80% in recent years as can be seen in Figure 1 (Connolly, 2010). Furthermore, the rising demand for services and the increase in real incomes results in more money spend on education, health, financial services and recreational services. The demands of services also rise because there are more families where both parents work and there is a need of services that in the past were provided within the household such as home maintenance, child care and …show more content…

In many urban areas, the gab between high-income workers and low-income workers is increasing, creating inequality and lower social mobility. Not only has the gap between the rich and poor widened, but this gap also has become a crucial determinant of overall welfare such as education, employment, health and personal security. 70% of the population in Australia lives in cities and towns and therefore the major cities play a key function of the national economy. The increase in urbanization creates conflicts and competition between richer and poorer communities as an increasing amount of jobs need higher qualifications. The structure of the Australian economy has shifted from manufacturing towards services. Employees from the manufacturing jobs were especially vulnerable as 70% of the workforce had no educational qualifications and therefore couldn’t adapt to the new sector and technology

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